covers all topics related stress and change management in an organizational behavior

1. o r g a n i z a t i o n a l b e h a v i o
r
Dr Khyati
Boriya

2. 18–2
After studying this chapter,
you should be able to:
1. Describe forces that act as stimulants to
change.
2. Summarize the sources of individual and
organizational resistance to change.
3. Summarize Lewin’s three-step change model.
4. Explain the values underlying most OD efforts.
5. Contrast process reengineering and
continuous improvement processes
6. Identify properties of innovative organizations.
LEARNINGOBJECTIVES

3. 18–3
After studying this chapter,
you should be able to:
7. List characteristics of a learning organization.
8. Describe potential sources of stress.
9. Explain individual difference variables that
moderate the stress–outcome relationship.
LEARNINGOBJECTIVES(cont’d)

4. 18–4
Forces for ChangeForces for Change
Force Examples
Nature of the workforce More cultural diversity
Aging population
Many new entrants with inadequate skills
Technology Faster, cheaper, and more mobile computers
On-line music sharing
Deciphering of the human genetic code
Economic shocks Rise and fall of dot-com stocks
2000–02 stock market collapse
Record low interest rates
Competition Global competitors
Mergers and consolidations
Growth of e-commerce

5. 18–5
Forces for ChangeForces for Change
Force Examples
Social trends Internet chat rooms
Retirement of Baby Boomers
Rise in discount and “big box” retailers
World politics Iraq–U.S. war
Opening of markets in China
War on terrorism following 9/11/01

6. 18–6
Managing Planned ChangeManaging Planned Change
Goals of Planned
Change:
Improving the ability of
the organization to
adapt to changes in its
environment.
Changing the behavior
of individuals and
groups in the
organization.
Goals of Planned
Change:
Improving the ability of
the organization to
adapt to changes in its
environment.
Changing the behavior
of individuals and
groups in the
organization.
Change
Making things different.
Planned Change
Activities that are
intentional and goal
oriented.
Change Agents
Persons who act as
catalysts and assume the
responsibility for managing
change activities.

7. 18–7
Resistance to ChangeResistance to Change
Forms of Resistance to Change
– Overt and immediate
• Voicing complaints, engaging in job actions
– Implicit and deferred
• Loss of employee loyalty and motivation, increased
errors or mistakes, increased absenteeism

8. 18–8
Sources of Individual Resistance to ChangeSources of Individual Resistance to Change

9. 18–9
Sources of Organizational Resistance to
Change
Sources of Organizational Resistance to
Change

10. 18–10
Overcoming Resistance to ChangeOvercoming Resistance to Change
Tactics for dealing with
resistance to change:
• Education and communication
• Participation
• Facilitation and support
• Negotiation
• Manipulation and cooptation
• Coercion
Tactics for dealing with
resistance to change:
• Education and communication
• Participation
• Facilitation and support
• Negotiation
• Manipulation and cooptation
• Coercion

11. 18–11
The Politics of ChangeThe Politics of Change
 Impetus for change is likely to come from outside
change agents.
 Internal change agents are most threatened by
their loss of status in the organization.
 Long-time power holders tend to implement only
incremental change.
 The outcomes of power struggles in the
organization will determine the speed and quality
of change.

12. 18–12
Lewin’s Three-Step Change ModelLewin’s Three-Step Change Model
Unfreezing
Change efforts to overcome
the pressures of both
individual resistance and
group conformity.
Refreezing
Stabilizing a change
intervention by balancing
driving and restraining forces.
Driving Forces
Forces that direct behavior
away from the status quo.
Restraining Forces
Forces that hinder movement
from the existing equilibrium.

13. 18–13
Lewin’s Three-Step Change ModelLewin’s Three-Step Change Model

14. 18–14
Unfreezing the Status QuoUnfreezing the Status Quo

15. 18–15
Kotter’s Eight-Step Plan for Implementing ChangeKotter’s Eight-Step Plan for Implementing Change
1. Establish a sense of urgency by creating a compelling reason
for why change is needed.
2. Form a coalition with enough power to lead the change.
3. Create a new vision to direct the change and strategies for
achieving the vision.
4. Communicate the vision throughout the organization.
5. Empower others to act on the vision by removing barriers to
change and encouraging risk taking and creative problem
solving.
6. Plan for, create, and reward short-term “wins” that move the
organization toward the new vision.
7. Consolidate improvements, reassess changes, and make
necessary adjustments in the new programs.
8. Reinforce the changes by demonstrating the relationship
between new behaviors and organizational success.

16. 18–16
Action ResearchAction Research
Process Steps:
1. Diagnosis
2. Analysis
3. Feedback
4. Action
5. Evaluation
Process Steps:
1. Diagnosis
2. Analysis
3. Feedback
4. Action
5. Evaluation
Action research benefits:
Problem-focused rather
than solution-centered.
Heavy employee
involvement reduces
resistance to change.
Action research benefits:
Problem-focused rather
than solution-centered.
Heavy employee
involvement reduces
resistance to change.
Action Research
A change process based on systematic collection of
data and then selection of a change action based on
what the analyzed data indicate.

17. 18–17
Organizational DevelopmentOrganizational Development
OD Values:
1. Respect for people
2. Trust and support
3. Power equalization
4. Confrontation
5. Participation
OD Values:
1. Respect for people
2. Trust and support
3. Power equalization
4. Confrontation
5. Participation
Organizational Development (OD)
A collection of planned interventions, built on
humanistic-democratic values, that seeks to improve
organizational effectiveness and employee well-being.

18. 18–18
Organizational Development TechniquesOrganizational Development Techniques
Sensitivity Training
Training groups (T-groups) that
seek to change behavior through
unstructured group interaction.
Provides increased awareness of
others and self.
Increases empathy with others,
improves listening skills, greater
openess, and increased tolerance
for others.

19. 18–19
Organizational Development Techniques
(cont’d)
Organizational Development Techniques
(cont’d)
Survey Feedback Approach
The use of questionnaires to identify
discrepancies among member perceptions;
discussion follows and remedies are suggested.

20. 18–20
Organizational Development Techniques
(cont’d)
Organizational Development Techniques
(cont’d)
Process Consultation (PC)
A consultant gives a client insights into what is going
on around the client, within the client, and between the
client and other people; identifies processes that need
improvement.

21. 18–21
Organizational Development Techniques
(cont’d)
Organizational Development Techniques
(cont’d)
Team Building Activities:
• Goal and priority setting.
• Developing interpersonal relations.
• Role analysis to each member’s role and
responsibilities.
• Team process analysis.
Team Building Activities:
• Goal and priority setting.
• Developing interpersonal relations.
• Role analysis to each member’s role and
responsibilities.
• Team process analysis.
Team Building
High interaction among team members to
increase trust and openness.

22. 18–22
Organizational Development Techniques
(cont’d)
Organizational Development Techniques
(cont’d)
Intergroup Problem Solving:Intergroup Problem Solving:
• Groups independently develop lists of perceptions.Groups independently develop lists of perceptions.
• Share and discuss lists.Share and discuss lists.
• Look for causes of misperceptions.Look for causes of misperceptions.
• Work to develop integrative solutions.Work to develop integrative solutions.
Intergroup Problem Solving:Intergroup Problem Solving:
• Groups independently develop lists of perceptions.Groups independently develop lists of perceptions.
• Share and discuss lists.Share and discuss lists.
• Look for causes of misperceptions.Look for causes of misperceptions.
• Work to develop integrative solutions.Work to develop integrative solutions.
Intergroup Development
OD efforts to change the attitudes, stereotypes, and
perceptions that groups have of each other.

23. 18–23
Organizational Development Techniques
(cont’d)
Organizational Development Techniques
(cont’d)
Appreciative Inquiry (AI):
• Discovery: recalling the strengths of the organization.
• Dreaming: speculation on the future of the
organization.
• Design: finding a common vision.
• Destiny: deciding how to fulfill the dream.
Appreciative Inquiry (AI):
• Discovery: recalling the strengths of the organization.
• Dreaming: speculation on the future of the
organization.
• Design: finding a common vision.
• Destiny: deciding how to fulfill the dream.
Appreciative Inquiry
Seeks to identify the unique qualities and special
strengths of an organization, which can then be built
on to improve performance.

24. 18–24
Contemporary Change Issues For Today’s
Managers
Contemporary Change Issues For Today’s
Managers
 How are changes in technology affecting the
work lives of employees?
 What can managers do to help their organizations
become more innovative?
 How do managers create organizations that
continually learn and adapt?
 Is managing change culture-bound?

25. 18–25
Technology in the WorkplaceTechnology in the Workplace
 Continuous Improvement Processes
– Good isn’t good enough.
– Focus is on constantly reducing the variability in the
organizational processes to produce more uniform
products and services.
• Lowers costs and raises quality.
• Increases customer satisfaction.
– Organizational impact
• Additional stress on employees to constantly excel.
• Requires constant change in organization.

26. 18–26
Technology in the WorkplaceTechnology in the Workplace
 Process Reengineering
– “Starting all over”
– Rethinking and redesigning organizational processes
to produce more uniform products and services.
• Identifying the organization’s distinctive competencies—
what it does best.
• Assessing core processes that add value to the
organization’s distinctive competencies.
• Reorganizing horizontally by process using cross-
functional and self-managed teams.

27. 18–27
Contemporary Change Issues for Today’s
Managers: Stimulating Innovation
Contemporary Change Issues for Today’s
Managers: Stimulating Innovation
Sources of Innovation:Sources of Innovation:
• Structural variablesStructural variables
• Organic structuresOrganic structures
• Long-tenured managementLong-tenured management
• Slack resourcesSlack resources
• Interunit communicationInterunit communication
• Organization’s cultureOrganization’s culture
• Human resourcesHuman resources
Sources of Innovation:Sources of Innovation:
• Structural variablesStructural variables
• Organic structuresOrganic structures
• Long-tenured managementLong-tenured management
• Slack resourcesSlack resources
• Interunit communicationInterunit communication
• Organization’s cultureOrganization’s culture
• Human resourcesHuman resources
Innovation
A new idea
applied to initiating
or improving a
product, process,
or service.

28. 18–28
Contemporary Change Issues for Today’s
Managers: Stimulating Innovation (cont’d)
Contemporary Change Issues for Today’s
Managers: Stimulating Innovation (cont’d)
Idea Champions
Individuals who take an innovation and actively and
enthusiastically promote the idea, build support,
overcome resistance, and ensure that the idea is
implemented.

29. 18–29
Creating a Learning OrganizationCreating a Learning Organization
Characteristics:Characteristics:
1.1. Holds a shared visionHolds a shared vision
2.2. Discards old ways ofDiscards old ways of
thinking.thinking.
3.3. Views organization asViews organization as
system of relationships.system of relationships.
4.4. Communicates openly.Communicates openly.
5.5. Works together toWorks together to
achieve shared vision.achieve shared vision.
Characteristics:Characteristics:
1.1. Holds a shared visionHolds a shared vision
2.2. Discards old ways ofDiscards old ways of
thinking.thinking.
3.3. Views organization asViews organization as
system of relationships.system of relationships.
4.4. Communicates openly.Communicates openly.
5.5. Works together toWorks together to
achieve shared vision.achieve shared vision.
Learning Organization
An organization that has
developed the continuous
capacity to adapt and
change.
E X H I B I T 18–6
E X H I B I T 18–6

30. 18–30
Creating a Learning OrganizationCreating a Learning Organization
Single-Loop Learning
Errors are corrected using
past routines and present
policies.
Double-Loop Learning
Errors are corrected by
modifying the organization’s
objectives, policies, and
standard routines.

31. 18–31
Creating a Learning OrganizationCreating a Learning Organization
Fundamental Problems in TraditionalFundamental Problems in Traditional
Organizations:Organizations:
• Fragmentation based on specialization.Fragmentation based on specialization.
• Overemphasis on competition.Overemphasis on competition.
• Reactiveness that misdirects attention toReactiveness that misdirects attention to
problem-solving rather than creation.problem-solving rather than creation.
Fundamental Problems in TraditionalFundamental Problems in Traditional
Organizations:Organizations:
• Fragmentation based on specialization.Fragmentation based on specialization.
• Overemphasis on competition.Overemphasis on competition.
• Reactiveness that misdirects attention toReactiveness that misdirects attention to
problem-solving rather than creation.problem-solving rather than creation.

32. 18–32
Managing a Learning OrganizationManaging a Learning Organization
EstablishEstablish
a strategya strategy
EstablishEstablish
a strategya strategy
Redesign theRedesign the
organization’sorganization’s
structurestructure
Redesign theRedesign the
organization’sorganization’s
structurestructure
Reshape theReshape the
organization’s cultureorganization’s culture
Reshape theReshape the
organization’s cultureorganization’s culture
ManagingManaging
LearningLearning
ManagingManaging
LearningLearning

33. 18–33
Mastering Change: It’s Culture-BoundMastering Change: It’s Culture-Bound
Questions for culture-bound organizations:
1. Do people believe change is even possible?
2. How long will it take to bring about change in the
organization?
3. Is resistance to change greater in this organization due
to the culture of the society in which it operates?
4. How will the societal culture affect efforts to implement
change?
5. How will idea champions in this organization go about
gathering support for innovation efforts?
Questions for culture-bound organizations:
1. Do people believe change is even possible?
2. How long will it take to bring about change in the
organization?
3. Is resistance to change greater in this organization due
to the culture of the society in which it operates?
4. How will the societal culture affect efforts to implement
change?
5. How will idea champions in this organization go about
gathering support for innovation efforts?

34. 18–34
Too Much Work, Too Little TimeToo Much Work, Too Little Time
E X H I B I T 18–7
E X H I B I T 18–7
With companies downsizing workers, those who
remain find their jobs are demanding increasing
amounts of time and energy. A national sample of
U.S. employees finds that they:
Feel overworked 54%
Are overwhelmed by workload 55%
Lack time for reflection 59%
Don’t have time to complete tasks 56%
Must multi-task too much 45%

35. 18–35
Work Stress and Its ManagementWork Stress and Its Management
Stress
A dynamic condition in which an individual is
confronted with an opportunity, constraint, or
demand related to what he or she desires
and for which the outcome is perceived to be
both uncertain and important.

36. 18–36
Work Stress and Its ManagementWork Stress and Its Management
Constraints
Forces that prevent individuals
from doing what they desire.
Demands
The loss of something
desired.

37. 18–37

38. 18–38
Potential Sources of StressPotential Sources of Stress
 Environmental Factors
– Economic uncertainties of the business cycle
– Political uncertainties of political systems
– Technological uncertainties of technical innovations
– Terrorism in threats to physical safety and security

39. 18–39
Potential Sources of StressPotential Sources of Stress
 Organizational Factors
– Task demands related to the job
– Role demands of functioning in an organization
– Interpersonal demands created by other employees
– Organizational structure (rules and regulations)
– Organizational leadership (managerial style)
– Organization’s life stage (growth, stability, or decline)

40. 18–40
Potential Sources of Stress (cont’d)Potential Sources of Stress (cont’d)
 Individual Factors
– Family and personal relationships
– Economic problems from exceeding earning capacity
– Personality problems arising for basic disposition
 Individual Differences
– Perceptual variations of how reality will affect the
individual’s future.
– Greater job experience moderates stress effects.
– Social support buffers job stress.
– Internal locus of control lowers perceived job stress.
– Strong feelings of self-efficacy reduce reactions to job
stress.

41. 18–41
Consequences of StressConsequences of Stress
High LevelsHigh Levels
of Stressof Stress
High LevelsHigh Levels
of Stressof Stress
PhysiologicalPhysiological
SymptomsSymptoms
PhysiologicalPhysiological
SymptomsSymptoms
BehavioralBehavioral
SymptomsSymptoms
BehavioralBehavioral
SymptomsSymptoms
PsychologicalPsychological
SymptomsSymptoms
PsychologicalPsychological
SymptomsSymptoms

42. 18–42
A Model of StressA Model of Stress

43. 18–43
Inverted-U Relationship between Stress and
Job Performance
Inverted-U Relationship between Stress and
Job Performance
E X H I B I T 18–10
E X H I B I T 18–10

44. 18–44
Managing StressManaging Stress
 Individual Approaches
– Implementing time management
– Increasing physical exercise
– Relaxation training
– Expanding social support network

45. 18–45
Managing StressManaging Stress
 Organizational Approaches
– Improved personnel selection and job placement
– Training
– Use of realistic goal setting
– Redesigning of jobs
– Increased employee involvement
– Improved organizational communication
– Offering employee sabbaticals
– Establishment of corporate wellness programs